ces Required information. [The following information applies to the questions displayed below.) The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Cash Inventory Common Stock Retained Earnings Total Debit $ 16,000 8,000 Credit $ 20,000 4,000 $ 24,000 $24,000 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $15,000. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash. 3. Returned $2,600 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $1,100 allowance. 5. Sold merchandise that cost $15,000 for $31,000 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $500 cash. 7. Paid $8,000 on the merchandise purchased in Event 1. 8. Paid $9,000 cash for operating expenses. Cash Beg. Bal Beg. Bal 5a. End. Bal End. Bal Accounts Payable Inventory Common Stock Beg. Bal Beg. Bal 8,000 20,000 End. Bal 8,000 End. Bal 20,000 Retained Earnings Sales Revenue Beg. Bal Beg. Bal 4,000 End. Bal 4,000 End. Bal Cost of Goods Sold Transportation-out Beg. Bal Beg. Bal 3. 4. 5a. End. Bal 8,000 End. Bal 20,000 Retained Earnings Sales Revenue Beg. Bal Beg. Bal 4,000 End. Bal 4,000 End. Bal Cost of Goods Sold Transportation-out Beg. Bal Beg. Bal End. Bal ces Beg. Bal End. Bal Operating Expenses End. Bal